IPO bound online used car selling and buying platform Cars24 is expected to hit profitability in the next 12-18 months and is currently planning to expand its services as it hits the milestone.
The auto-tech company is also looking to foray in the new cars marketplace as it is expecting profitability in the next 18 months
IPO bound online used car selling and buying platform Cars24 is expected to hit profitability in the next 12-18 months and is currently planning to expand its services as it hits the milestone.
It is currently not a profitable entity and is yet to disclose its financial figures for FY24. However, as per the figures of FY23, the company’s losses stood at $168.3 million, that was a 32 per cent decline from FY22.
The start-up is now aiming to launch new products, foraying into accessories and spares, providing car insurance and car servicing among a few services, along with providing loans for buying old and new cars. Co-founder and chief marketing officer Gajendra Jangid said that the start-up is also looking at venturing into selling and financing new cars moving ahead, as it hits break even.
He stated that unicorn has already crossed $1 billion in turnover and is expecting the used car marketplace in India to reach $100 billion in the next ten years, adding that the company is seeing great rise in demand from tier 2 and tier 3 towns.
Speaking to Outlook Business on the launch of ‘Orbit’, a new feature in the company’s Play Store app, which brings all its services including its NBFC arm under one platform, Jangid told that the company is gearing up for the IPO, however, there is no set deadline yet.
“We definitely want to get listed in India and we are gearing up internally for that, however, that is a huge milestone and needs its thorough process. We are also working on many other major things as well, such as our partnership with ONDC, bringing in new technologies, enhancing car transactions with features like Orbit”, he said.
The company has recently signed a letter of intent with e-commerce network ONDC and Jangid told Outlook Business that Cars24 is expecting to get live on ONDC by FY25.
Founded in 2015 by Jangid, Vikram Chopra, Ruchit Agarwal, and Mehul Agrawal, Cars24 facilitates the buying, selling, and financing of pre-owned cars in India, Australia, and the UAE. It competes with other platforms like CarTrade, CarDekho, Spinny, and Droom and currently owns 4 per cent of the market share having sold over 2 lakh cars.